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of a country distracted by civià war each claim to manage

telegraph office in Hong Konghy officials under them.

I suggest that as a face saving device I be authorized

to inform Chen that he will be recognized in lieu of the

present manager upon the distinct understanding that the

Eastern Extension Telegraph Company as agents at Hong Kong

for Chinese Ministry of Communications are handed over the

control of the Hong Kong Office immediately he assumes his

duties. I further recommend that I be authorized to inform

him that if this proposal is rejected this Government will

close down the telegraph office in Hong Kong pending the

possibility of negotiating satisfactory working agreement for

land line with the Canton authorities.

Addressed to Secretary of State for the Colonies

590

repeated to Peking No. 59/Canton.

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